Trends for Logistics of the Future - Select two major trends and discuss their

impact
logistics works in two directions – forward and reverse. When we talk about logistics, we
usually mean forward direction, which includes such operations as receiving and processing
an order, checking and preparing inventory, packing and picking an item, dispatching it
and selecting a transportation route that will deliver the product to a customer as quickly and
efficiently as possible. Reverse direction means any operations with managing incorrect or
damaged shipments, repairing items, and reusing or recycling.
1.Environmental footprint and sustainable solutions will be top focus.
2.Automation, robotization, and AI has high impact on logistics
3.Internet of things is a key enabler for improving logistics value chains
4.Electro-mobility largely contributes to greener transports
5.Blockchain technology has the potential to revolutionize logistics
6. Urbanization and consumption will put strains on city logistics
7.Cognitive skills, insight, and innovation become more important

Artificial Intelligence
Def:- Artificial intelligence encompasses systems that can mimic, automate, replicate human
thinking and take data-driven actions more effectively than humans do. In other words, AI
shares some common abilities with humans. Such are the abilities to perceive various types
of information, understand different datasets, learn in many ways, and generate solutions.
To be able to imitate human thinking, artificial systems require significant volumes of data as
the input about any process. AI-based systems can process text, image and video, and
sound data similar to what humans can through senses.

Role Of Artificial Intelligence In Logistics Sector

The primary purpose of many AI implementations in the logistics industry is to automate

time-consuming actions and save money. Many tech enterprises (e.g. Google, Amazon) are
heavily invested in this technology and leading the field. Research shows that artificial
intelligence (AI) is better at predicting outcomes and making projections than unaided human
cognition.
AI plays a pivotal role in saving time, reducing costs, increasing productivity and accuracy
with cognitive automation.
It allows us to save time and money because it helps in automating various time-consuming
processes and helps in demand forecasting.
AI helps in logistics route optimization, which helps in reducing the costs of shipping, which
further aids in generating more profits. Computers using artificial intelligence can gather,
analyse information to make informed decisions within a matter of seconds and save time for
humans.
AI helps to completely transform warehousing operations in the form of collecting and
analysing information or inventory processing. Robots are already being used widely for
instance, inside warehouses to move, track and locate inventories. Through AI, logistics
players are able to leverage data platforms and create datasets to regulate patterns and
anomalies. 
Role Of Machine Learning

With the assistance of Machine learning the patterns in supply chain data are

often discovered by counting on algorithms which may quickly pinpoint the
foremost influential factors. Its algorithm and the logistics companies using this technology
are capable of analysing large, diverse data sets fast, improving demand forecasting
accuracy. Machine learning helps to reduce freight costs, improve supplier delivery
performance, and minimize the supplier risk in the collaborative supply chain and logistics
segment.
In logistics, everything is time-bound and there are minor unpredictable issues. Each and
every process in this sector depends on the one preceding it and a minor delay on one stage
causes a magnified ripple effect on all the other stages. At the time of delivery, there ends up
being a delay of days because of a few hours of down-time.
The digitization of logistic planning through machine learning can help to predict unforeseen
circumstances, which can further reduce the chances of any mishappening during the
delivery of goods. Machine learning in the logistics industry replaces the complicated steps
of planning and scheduling, working with more accuracy and efficiency, thus streamlining the
processes efficiently. 

Autonomous vehicle, or a driverless vehicle, is one that is able to operate itself and
perform necessary functions without any human intervention, through ability to sense its
surroundings. An autonomous vehicle utilises a fully automated driving system in order to
allow the vehicle to respond to external conditions that a human driver would manage.

There are six different levels of automation and, as the levels increase, the extent of the
driverless car’s independence regarding operation control increases.

At level 0, the car has no control over its operation and the human driver does all of the
driving.

At level 1, the vehicle’s ADAS (Advanced driver assistance system which uses AI, ML &
Sensors) has the ability to support the driver with either steering or accelerating and braking.

At level 2, the ADAS can oversee steering and accelerating and braking in some conditions,
although the human driver is required to continue paying complete attention to the driving
environment throughout the journey, while also performing the remainder of the necessary
tasks.

At level 3, the ADS (advanced driving system) can perform all parts of the driving task in
some conditions, but the human driver is required to be able to regain control when
requested to do so by the ADS. In the remaining conditions, the human driver executes the
necessary tasks.

At level 4, the vehicle’s ADS is able to perform all driving tasks independently in certain
conditions in which human attention is not required.

Finally, level 5 involves full automation whereby the vehicle’s ADS is able to perform all
tasks in all conditions, and no driving assistance is required from the human driver. This full
automation will be enabled by the application of 5G technology, which will allow vehicles to
communicate not just with one another, but also with traffic lights, signage and even the
roads themselves.

One of the aspects of the vehicle technology used in automated vehicles is ACC, or adaptive
cruise control. This system is able to adjust the vehicle’s speed automatically to ensure that
it maintains a safe distance from the vehicles in front of it. This function relies on information
obtained using sensors on the vehicle and allows the car to perform tasks such as brake
when it senses that it is approaching any vehicles ahead. This information is then processed
and the appropriate instructions are sent to actuators in the vehicle, which control the
responsive actions of the car such as steering, acceleration and braking.
autonomous vehicles in logistics have already taken on a significant part of the logistics
work process. Although there are still no autonomous trucks that transport thousands of tons
of goods on the open road, autonomous forklifts, and robot arms are a common piece of
technology in modern warehouses. They load, unload and transport goods within the
warehouse area, by connecting to one another and forming flexible conveyor belts. These
tasks require advanced sensors, as well as vision and geo guidance technology. In addition
to warehouses, we can also see autonomous vehicles in logistics in airports, harbours, and
yards.

Still, this is far from autonomous driving on the open road. The future of logistics will include
large autonomous trucks, delivering goods. Autonomous forklifts will then unload the
packages and put them in their place using a network of conveyor belts and robot arms.
Some truck manufacturers have already made significant steps to introduce the first fully
autonomous heavy duty freight vehicles.

Warehouse Robotics in Supply Chain

1. Autonomous Mobile Robots (AMR)

AMRs use sophisticated sensor technology to deliver inventory all over the warehouse. They
do not require a set track between locations. They can understand and interpret their
environment through the use of maps, computers, and onboard sensors. These warehouse
robots are small and nimble with the ability to identify the information on each package and
sort it with impeccable accuracy. They cut down on the redundant manual process which is
prone to human error. 
2. Aerial Drones
Aerial drones aid in optimizing warehouse inventory processes. They can quickly scan
locations for automated inventory. They can scan inventory much faster than a human can
and send an accurate count immediately to your warehouse inventory management
software. These drones do not need markers or lasers to guide them. They don’t take up
valuable space in your warehouse. They can travel quickly and assist in hard-to-reach
areas. 
3. Automated Guided Vehicles 
Automated guided vehicles and carts (AGVs and AGCs) transport inventory around your
warehouse following a track laid in your warehouse. These warehouse robots are perfect for
larger warehouses because it reduces the time spent by workers just moving from one area
to the next. 
4. Automated Storage and Retrieval System (AS and RS)
Automated Storage and Retrieval Systems are robot-aided systems that can place or
retrieve loads from set storage locations. AS and RS differ depending on the system
needed, the type of task, or the goods that they will be working with. They can be
programmed to work as a craft that moves and works on a well-defined path or a crane that
retrieves goods between aisles. There are also aisle climbing robots that retrieve customer
orders. 
These free up the time of workers who can then concentrate on more complicated processes
such as packing and posting the goods. 

Blockchain technology

Cryptography is the practice of developing protocols that prevent third parties from viewing
private data. Modern cryptography combines the disciplines of math, computer science,
physics, engineering, and more. Some important terms are defined below:
Encryption: Encoding text into an unreadable format.
Decryption: Reserving encryption – converting a jumbled message into its original form.
Cipher: An algorithm for performing encryption or decryption, usually a well-defined set of
steps that can be followed.
important cryptography topics that relate to blockchain technology including public-key
cryptography, hashing, and Merkle trees.

Symmetric-key encryption – In symmetric-key encryption, the same key is used to both

encrypt and decrypt data. This is an efficient method that is used everywhere in information
security, from encrypting your hard drive, to securing your connection to a HTTPS website.

Public-key (asymmetric) encryption – Public-key cryptography uses separate keys for the

encryption and decryption processes. These are the public key, which is shared openly, and
the private key, which must be kept secret. It relies on some interesting mathematical
properties, and enables two parties who have never met before to securely exchange
information. It is relatively inefficient, so in practice, public-key cryptography is only used to
encrypt the symmetric key, which in turn is used to encrypt data.

Def:- A blockchain is essentially a digital ledger of transactions that is duplicated

and distributed across the entire network of computer systems on the blockchain.
Each block in the chain contains a number of transactions, and every time a new
transaction occurs on the blockchain, a record of that transaction is added to
every participant’s ledger. The decentralised database managed by multiple
participants is known as Distributed Ledger Technology (DLT).

Blockchain is a type of DLT in which transactions are recorded with an immutable

cryptographic signature called a hash .
This means if one block in one chain was changed, it would be immediately
apparent it had been tampered with. If hackers wanted to corrupt a blockchain
system, they would have to change every block in the chain, across all of the
distributed versions of the chain.
There are three main advantages of blockchain compared to other cover mediums:

(1) it is anonymous and free to join, meaning that the communication parties have free
access;
(2) submitted data cannot be altered and, in particular, the integrity guarantees are not
provided by any centralized party, but rather the consensus of the entire network; and
(3) published data cannot be removed, meaning that no authority can apply censorship to
already published data. Since the blockchain is immutable, alteration of the covert messages
is virtually impossible, and the embedding of covert information is free to be fragile.

The key to keeping blockchain data manageable – and secure – is through an algorithm
called hashing in combination with a consolidating data structure known as a Merkle Tree. 

 
What is hashing?
When a transaction has been verified and needs to be added to a block in a chain, it will be
put through a hash algorithm to convert it into set of unique numbers and letters, similar to
what would be created by a random password generator. Then two transaction hashes will
be combined, and put through the hash algorithm to produce another unique hash. This
process of combining multiple transactions into new hashes continues until finally there
remains just one hash – the ‘root’ hash of several transactions.  What makes hashes unique,
and a key security feature for blockchains, is that they only work one way. While the same
data will always produce the same hash of numbers and letters, it is impossible to ‘un-hash’,
or reverse the process, using the numbers and letters to decipher the original data. 
 
What is a Merkle Tree?
If the hashing process is repeated with exactly the same transactions, exactly the same
hashes will be created. This allows anyone using the blockchain to check that the data has
not been tampered with, because ANY change in any part of the data will result in a
completely different hash, affecting every iteration of hashes all the way to the root. This is
known as a Merkle Tree.
Merkle Trees serve the purpose of significantly reducing the amount of data required to be
stored and transmitted or broadcast over the network by summarising sets of hashed
transactions into a single root hash. As each transaction is hashed, then combined and
hashed again, the final root hash will still be a standard size. 

Block Chain in Logistics

Big data is the basis for the development of blockchain technology. Data analysis provides
accurate information, through the use of which timely decisions can be made. The
blockchain technology allows more secure tracking of all types of transactions, for example
money transactions, data transactions, information transactions, etc. In the supply chain this
technology could dramatically reduce time delays, added costs and human errors. With
blockchain technology in the supply chain every time a product is exchanged between sides,
the transaction could be documented, creating a permanent history of the particular product,
from manufacture to sale (from suppliers to customers). Logistics and supply chain
management are regarded as domains where blockchains are good fits for a series of
reasons. During the lifecycle of the product, as it flows down the value chain (from
production to consumption) the data generated in every step can be documented as a
transaction, thus creating a permanent history of the product. Among things, blockchain
technology can effectively contribute to:
(i) Recording every single asset (from product to containers) as it flows through the
supply chain nodes,
(ii) tracking orders, receipts, invoices, payments, and any other official document, and
(iii) track digital assets (such as warranties, certifications, copyrights, licenses, serial
numbers, bar codes) in a unified way and in parallel with physical assets, and
others. Moreover, the blockchain can contribute effectively, through its decentralized
nature, to sharing information about the production process, delivery, maintenance,
and wear-off of products between suppliers and vendors, bringing new modalities of
collaboration in complex assembly lines
Industry 4.0
The term Industry 4.0 encompasses a promise of a new industrial revolution—one that
marries advanced manufacturing techniques with the Internet of Things to create
manufacturing systems that are not only interconnected, but communicate, analyze, and use
information to drive further intelligent action back in the physical world. We are now in the
fourth industrial revolution, also referred to as Industry 4.0. Characterized by increasing
automation and the employment of smart machines and smart factories, informed data helps
to produce goods more efficiently and productively across the value chain. Flexibility is
improved so that manufacturers can better meet customer demands using mass
customization—ultimately seeking to achieve efficiency with, in many cases, a lot size of
one. By collecting more data from the factory floor and combining that with other enterprise
operational data, a smart factory can achieve information transparency and better decisions.
Industrial operations are dependent on a transparent, efficient supply chain, which must be
integrated with production operations as part of a robust Industry 4.0 strategy. This
transforms the way manufacturers resource their raw materials and deliver their finished
products. By sharing some production data with suppliers, manufacturers can better
schedule deliveries. If, for example, an assembly line is experiencing a disruption, deliveries
can be rerouted or delayed in order to reduce wasted time or cost. Additionally, by studying
weather, transportation partner and retailer data, companies can use predictive shipping to
send finished goods at just the right time to meet consumer demand. Blockchain is emerging
as a key technology to enable transparency in supply chains.
Optimize logistics and supply chains: A connected supply chain can adjust and
accommodate when new information is presented. If a weather delay ties up a shipment, a
connected system can proactively adjust to that reality and modify manufacturing priorities.
Autonomous equipment and vehicles: There are shipping yards that are leveraging
autonomous cranes and trucks to streamline operations as they accept shipping containers
from the ships.
Robots: Once only possible for large enterprises with equally large budgets, robotics are
now more affordable and available to organizations of every size. From picking products at a
warehouse to getting them ready to ship, autonomous robots can quickly and safely support
manufacturers. Robots move goods around Amazon warehouses and also reduce costs and
allow better use of floor space for the online retailer.
Additive manufacturing (3D printing): This technology has improved tremendously in the last
decade and has progressed from primarily being used for prototyping to actual production.
Advances in the use of metal additive manufacturing have opened up a lot of possibilities for
production.
Internet of Things and the cloud: A key component of Industry 4.0 is the Internet of Things
that is characterized by connected devices. Not only does this help internal operations, but
through the use of the cloud environment where data is stored, equipment and operations
can be optimized by leveraging the insights of others using the same equipment or to allow
smaller enterprises access to technology they wouldn’t be able to on their own.